Global I ndustry Response Group ( GI RG) Overview ( Not Business as Usual) I ADC Annual Conference, Copenhagen Steve Cromar, ConocoPhillips Annabel Holroyd, OGP 1
OGP background I nternational Association of Oil & Gas Producers More than 70 members around the world • • Integrated oil & gas explorers/producers • Small independent oil & gas companies • National oil companies • Service sector companies (associate members) 15 national and other associations • • Including API, IADC, APPEA, IPIECA, OLF, NOGEPA, IBP, O&G UK Based in London with an EU office in Brussels • 2
The GI RG response GI RG’s task To improve the industry’s well incident prevention, intervention and response capability to reduce materially the likelihood and impact of future well incidents 3
GI RG organisation OGP Management Committee (provided overall steer) Communications Group GI RG Co-ordination Group Well Engineering Design & Capping & Containment Equipment / Operating Oil Spill Response Capability Review Group Procedures 4
The GI RG response cont’d Three dedicated teams – brought together from some 20 companies, comprised of more than 100 technical experts and management –developed recommendations that will deliver: •Better capabilities and practice in well engineering design and well operations management in order to reduce the likelihood and impact of future well incidents •Improved capping response readiness (in the event of an incident) and to study further the need for, and feasibility of, global containment solutions •Effective and fit-for-purpose oil spill response preparedness and capability 5
W ell Engineering Design & W ell Operations Managem ent recom m endations •A 3-tier review process •The promotion of human competence management systems to ensure individual staff and management teams always have the skills they need •The promotion of a culture that fosters adherence to standards and procedures •Recognition of existing agreed standards – both international and national – as a baseline for industry improvements •New and improved technical and operational practices for the overall governance of well construction – under OGP governance •Recommend to industry and regulators that they insist upon a “two (independent and physical) barrier” policy during the life of the well 6
Capping Response/ I ntervention recom m endations • The concept selection, design and development of caps and associated equipment that can be deployed internationally • The concept selection, design and development of subsea dispersant hardware that can be deployed internationally • Further study into the need for, and feasibility of, containment solutions • Further investigation and development of procedures for specific operational issues related to the capping and containment of hydrocarbons released from a well blowout event • Activity is being co-ordinated with the MWC Project, OSPRAG and other equivalent initiatives 7
Oil Spill Preparedness & Response recom m endations I mprove co-ordination between key stakeholders (Oil • Spill Response Organisations [OSROs], governments and companies) internationally and with all responsible representative bodies (I PI ECA, API etc.) Establish principles on dispersant use with key • stakeholders • the effectiveness and value of the use of surface, aerial and, in particular, subsea dispersants • recommend how best to deploy dispersants • regulatory pre-approval for their use Promote research that advances understanding and • response methodologies and risk assessment models Enhance existing recommended practices for in situ • burning 8
I m plem entation of recom m endations To manage the implementation of the GI RG recommendations three new entities were proposed: •An OGP-governed Wells Expert Committee for well engineering design and well operations management in order to reduce the likelihood of future incidents •An industry consortium of nine major companies to enhance capping response readiness and study further the need for, and feasibility of, global containment solutions •A Joint Industry Project – an industry funded group of oil companies, including OGP and IPIECA* – to manage the recommendations on oil spill response These entities will work in close co-operation with National Oil I ndustry Associations (NOI As), the MWC Project and others * The global oil and gas industry association for environmental and social issues 9
I m plem entation - W ells To reduce the likelihood of well control incidents and share lessons learned, a new, permanent, Wells Expert Committee has been formed to analyse incident report data, advocate harmonised standards, communicate good practice and promote continued R&D – under OGP governance 10
Progress - W ells OGP’s new Wells Expert Committee consists of • senior technical staff representing 15 upstream operator, service companies and industry associations The Chair is Steve Cromar, ConocoPhillips’s UK • Chief Engineer, Well Operations The Committee is now drawing up its terms of • reference 11
I m plem entation – Capping T To deliver improved capping response readiness , the industry has formed a consortium* of nine major oil companies (BG Group, BP, Chevron, ConocoPhillips, ExxonMobil, Petrobras, Shell, Statoil and Total) that will study further the need for, and feasibility of, global containment solutions, and will develop an operating model for any equipment * The e Subsea bsea Wel ell Respo esponse se Proj ec ect (SWRP) 12
Progress - Capping The project team is working on: • Designing a capping toolbox with a range of equipment to allow wells to be shut in • Designing additional hardware for the subsea injection of dispersant • Further assessing the need for and feasibility of a containment system for shared use 13
I m plem entation – Oil Spill Response To deliver effective and fit-for-purpose oil spill preparedness and response capability a Joint I ndustry Project ( JI P) – including OGP and I PI ECA – is being formed to improve co-ordination between key stakeholders internationally and advance continuous improvements in oil spill preparedness and response capabilities 14
Key conclusions Action on prevention will yield the most effective outcomes • I mplementation of these recommendations by OGP member • companies will improve industry prevention and intervention capabilities – and OGP will encourage their wider adoption • Rigorous adherence to standards and practices is central to the prevention. • With specific enhancements, current standards will be effective if applied and rigorously observed. We strive to ensure greater alignment between standards internationally. • Verification of adherence to standards and practices is essential. • Also vital are sharing and expediting learning from well incident analyses. 15
Key conclusions ( cont’d) • An on-going commitment from the industry is required to work together for continuous improvement in skills development, competence and a culture of compliance • Active co-ordination and collaboration with NOI As, the MWCC, other private contractors and various international bodies is essential 16
EU response – W ho ? European Parliament called for EU action in various areas in: Resolution on EU action on oil exploration and extraction in Europe Adopted on 7 October 2010 17
EU response – W ho ? European Commission Set out areas for action by EU, Member States and industry in: Communication to the European Parliament and the Council “Facing the challenge of the safety of offshore oil and gas activities” Adopted on 12 October 2010 18
EU response – W ho ? Council „invites the Commission to present as early as possible in 2011 concrete initiatives, incl. Proposals to amend EU legislation, as appropriate“ Council conclusions on safety of offshore oil and gas activities Adopted at the Transports, Telecommunications and Energy Council meeting on 3 December 2010 19
EU response – W ho ? European Parliament is preparing Report on the Commission‘s Communication For adoption in July 2011 20
EU response – W ho ? European Commission is preparing legislative / non-legislation proposals For adoption possibly in July - September 2011 21
EU response – W hich areas ? Health & Safety? Directive 92/ 91 on minimum requirements for improving the safety and health protection of workers in the mineral-extracting industries through drilling I ssue: Safety case Photo: Øyvind Hagen / Statoil 22
EU response – W hich areas ? Environmental safety? Regulated at national level I ssue: Equipment in place Procedures Photo: Oil & Gas UK 23
EU response – W hich areas ? Environmental liability? Directive 2004/ 35 on environmental liability with regard to the prevention and remedying of environmental damage I ssues: Scope Financial cover Photo: Marit Hommedal / Statoil 24
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